In a surprising turn of events, Take-Two Interactive is reportedly contemplating either selling or closing its indie-focused publishing label, Private Division. This development is part of a broader strategic shift that has seen significant layoffs, studio closures, and the cancellation of several publishing deals.
An IGN report revealed that most of Private Division's staff have already been laid off. This follows the earlier announcement this month that Kerbal Space Program 2 developer Intercept Games and Rollerdrome studio Roll7 would be closing as part of Take-Two's cost-cutting measures. However, CEO Strauss Zelnick has stated that Take-Two did not shutter these studios, creating some confusion about their actual status. Despite this, multiple employees at Intercept Games have confirmed impending layoffs set for June, leaving the studio's future uncertain.
Both Kerbal Space Program 2 and Rollerdrome are titles under the Private Division label, further highlighting the precarious situation of the publishing unit. According to the IGN report, Take-Two's decision to either sell or close Private Division includes backing out of existing publishing deals. Notably, Private Division has withdrawn from agreements with Silent Hill 2 remake studio Bloober Team and Ghostrunner developer One More Level.
Take-Two has been exploring various options for Private Division's future. Negotiations to sell the Kerbal Space Program franchise, with or without its developer Intercept Games, to Paradox Interactive reportedly fell through. Additionally, discussions with a private equity firm about selling the entire label have yet to yield results. These talks are being facilitated by individuals connected to Moon Studios, the developer behind the Ori series and the upcoming No Rest for the Wicked, which is also published by Private Division.
Amid these turbulent changes, a tweet by Moon Studios CEO Thomas Mahler could be interpreted as a subtle nod to the industry's shifting landscape. Although his comments can be seen as general observations about the game industry's current state, the timing suggests a connection to the ongoing developments at Take-Two and Private Division. Mahler expressed his belief that the industry needs a significant course correction, citing an overemphasis on technology and profit. He remains optimistic, suggesting that despite a period of inevitable challenges, the industry will emerge wiser and better aligned with its core values.
"I am actually extremely excited about where things are heading, even if the industry has to go through a period of pain in order to come out wiser on the other end," Mahler tweeted. "Always remember that when one door closes, another one opens. Embrace change, because change is inevitable."
As Take-Two navigates this period of transition, the fate of Private Division remains uncertain, leaving many in the industry to speculate about the future of indie game publishing within the company.
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